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Former Member

Accruals/Deferrals

Hi All,

I am familiar with the accrual and deferrals in accounting but I am having a hard time mapping scenario in SAP. the t.code FBS1 (enter accrual) and F.81(reverse accrual) are just creating an entry and reversing it at end of month. But I dont get the big picture as how it overall affects the expense account and the deferral account.

Eg: if company pays prepaid rent (deferred rent - asset) 3 months in advance (jan feb mar), how does this map to the system? This is what I have so far (monthly rental $300):

Company receives invoice (jan 1):

-


Dr prepaid rent $300 (jan)

Dr prepaid rent $300 (feb)

Dr prepaid rent $300 (mar)

Cr vendor $900

(i am ignoring the vendor payment here to make it short)

End of Jan - Jan 31st:

-


Dr rent expense $300

Cr prepaid rent $300 (jan)

End of Feb - Feb 29:

-


Dr rent expense $300

Cr prepaid rent $300 (feb)

End of Mar - Mar 31:

-


Dr rent expense $300

Cr prepaid rent $300 (mar)

The end of month entries can be added as recurring but I don't see where I would setup accrual and reverse it at end of month in this case? Is there any online document with scenario on how accruals/deferrals work in SAP?

Thanks

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    author's profile photo Former Member
    Former Member
    Posted on Sep 18, 2007 at 08:14 AM

    Hi Kashif ,

    Attached is some info....have a look.Take it to a word document & read it. Award points if useful.

    Prepayments and Accrued Income / Accrued Expense and Deferred Income

    Accrual / Deferral Posting

    Use

    To fulfill the period definition of expenses, you can enter accrual / deferral documents and, in a subsequent step, cancel them (collective processing).

    The reversal date you define in the accrual / deferral document becomes the posting date of the canceling document.

    Reverse posting:

    The program creates a list of all documents and specifies whether a reverse posting is possible (test run) or has been made (update run). You can print the list out. After the test run, the reverse postings can be created from the list of all the documents for which a reverse posting is possible.

    Prerequisites

    You have posted a document in this fiscal year, but the expense, for example, also applies to the following year.

    For example, you post an invoice for rent amounting to INR 11,000.00, which is issued over a period from 01.03.current FY to 28.02.current FY+1.

    1. Access the activity using one of the following navigation options:

    Menu path Accounting  Financial Accounting  Accounts Payable  Document Entry  Invoice

    Transaction code FB60

    2. In the Enter Vendor Invoice: Company Code BP01 screen, enter the required data.

    Description R/O/C User action and values Comment

    Company Code BP01

    Vendor A2000

    Invoice Date 01.03.Current FY

    Posting Date 01.03.current FY

    Reference User-defined text

    Amount 12000

    G/L Acct 58062000

    D/C Debit

    Tax Code V0 If required make the entry

    Jurisdiction Code IN00 If required make the entry

    Amount in Doc. Curr. *

    Cost Center 1101

    3. Post this document.

    4. Access the activity using one of the following navigation options:

    Menu path Accounting  Financial Accounting  General Ledger  Account  Display/Change Line Items

    Transaction code FBL3N

    5. In the G/L Account Line Item Display screen, enter the required data.

    Description R/O/C User action and values Comment

    G/L Account Selection

    G/L Account 58062000

    Company Code BP01

    Line Item Selection

    Status Select “All Items”

    Execute (F8)

    The total expenditure pertains to the next financial year also debited in the current financial year. The amount pertains to the next financial year about Rs.11000/- to be transferred to next financial year by using the Accrual / Deferral postings option.

    Entering Accrual / Deferral Postings

    1. Access the activity using one of the following navigation options:

    Menu path Accounting  Financial Accounting  General Ledger  Periodic Processing  Closing  Valuate  Enter Accrual/Deferral Doc.

    Transaction code FBS1

    2. On the Enter Accrual/Deferral Doc.: Header Data screen, enter the required data.

    Description R/O/C User action and values Comment

    Document Date 31.03.current FY

    Posting Date 31.03.current FY

    Type SA

    Company Code BP01

    Currency INR

    Reversal Reason 05 Accrual / deferral posting

    Reversal Date 01/04/current FY

    PstKy 50 First line item

    Account 58062000

    Enter

    Amount 11,000.00

    Tax Code V0

    Jurisdiction Code IN00

    Cost Center 1101

    PstKy 40 Second line item

    Account 24700000

    Enter

    Amount *

    Text Accrual / deferral posting

    3. Post this document.

    4. Call up the line items for account 58062000 of 31.03.of the current fiscal year as follows:

    Menu path Accounting  Financial Accounting  General Ledger  Account  Display/Change Line Items

    Transaction code FBL3N

    5. In the G/L Account Line Item Display screen, enter the required data.

    Description R/O/C User action and values Comment

    G/L Account Selection

    G/L Account 58062000

    Line Item Selection

    Status Select “All Items”

    Posting Date 31.03.current FY

    Execute (F8)

    Reversing Accrual / Deferral Postings

    Prerequisites

    The document number for the next financial year has been defined.

    Posting period must be allowed to post the document.

    Procedure

    1. Access the activity using one of the following navigation options:

    Menu path Accounting  Financial Accounting  General Ledger  Periodic Processing  Closing  Valuate  Reverse Accrual/Deferral Document

    Transaction code F.81

    2. On the Reverse Accrual/Deferral Documents screen, enter the required data.

    Description R/O/C User action and values Comment

    Company Code BP01

    Fiscal Year Current fiscal year

    Execute Test run

    Update run

    3. Call up the line items for account 58062000 and compare with the descriptions provided in the

    previous steps.

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  • author's profile photo Former Member
    Former Member
    Posted on Sep 18, 2007 at 09:33 AM

    Hi,

    Use FBD1 (recurring document ) for your requirement. Enter the data in FBD1, one batch input session was created. Go to SM 35 run batch input session. you will get the required entry on required dates.

    Radha

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